The Treasury Department announced Thursday that it will soon carry out President Donald Trump’s plan to phase out production of the penny.
According to Politico, the one-cent coin has been produced by the U.S. government for over 200 years, however, a Treasury spokesperson said the department has placed its final order of blank pennies, while the U.S. Mint will stop production once those supplies run out.
Phasing out the penny will save the government approximately $56 million annually, after production of the penny reached almost four times its value, costing roughly 3.69 cents to produce.
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump wrote in a post in February when he ordered the move. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”
According to the Treasury, there are currently around 114 billion pennies in circulation which the U.S. Mint has been producing since 1793.
The cost of producing a nickel has increased to 13.78 cents, something Treasury Secretary Scott Bessent told lawmakers he will be looking into to reduce its cost to produce. However, according to Bessent, the dime is still “profitable.”
Businesses will likely have to round cash sales to the nearest five cents. Bessent told the House Appropriations Subcommittee, “We are also encouraging rounding down.”
Lawmakers have also introduced legislation to stop penny production, including Sens. Mike Lee (R-Utah), Jeff Merkley (D-Ore.), Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) and Rep. Lisa McClain (R-Mich.).
